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1 year ago

what is the effect of using fifo during a period of rising prices under a perpetual inventory system?

1 answer:

Ivan1 year ago

7 0

The FIFO technique of inventory valuation will provide the lowest cost of products sold during periods of rising prices since you are "selling" the older, lower-priced goods first.

The process of estimating an asset's or business's value is called valuation. Valuation is crucial because it tells potential buyers how much to offer for a firm or asset and tells potential sellers how much to ask for their wares. Analysts use valuation to establish the current or anticipated value of a stock, business, or asset. In order to identify promising investment candidates, valuation involves valuing a security and comparing the result to the current market price. The appraiser's identification of the appraisal issue marks the start of the valuation procedure, which concludes with their reporting of a result to you. Estimating market value is the most frequent job for an evaluation. Values that are frequently used include market value, book value, enterprise value, and stock value.

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Para que nos sirve la administración?

Yuri [45]

Answer:

La administración permite un uso más eficiente de los recursos mediante diferentes técnicas o herramientas. ... Genera información y conocimiento para optimizar la utilización de los recursos. Reduce costos, al favorecer la eficiencia de la organización.

Explanation:

7 0

3 years ago

Rosalinda got a payday loan for $2000, due in 2 weeks, and she paid a $150

maxonik [38]

Rosalinda's annual percentage rate (APR) on the loan is <u>195%</u>.

<h3>What is the annual percentage rate?</h3>

The annual percentage rate represents the finance fee and interest paid for borrowing.

The annual percentage rate (APR) for a period of 1 year an be computed by the following simple interest formula:

(Interest + Fee ÷ Principal) ÷ Period

We can multiply the result above by 100 to express it as a percentage.

Assuming that the periodic interest rate is known, we multiply the number of periods in the year to compute the annual percentage rate.

Principal = $2,000

Fee on the loan = $150

Period of loan = 2 weeks

52 weeks = 1 year

Annual percentage rate = 195% ($150/$2,000 x 100 x 52/2)

<u>Check</u>:

APR in dollars = $150 ($2,000 x 195% x 2/52)

Thus, for borrowing $2,000 in two weeks and paying $150 as fee, Rosalinda's loan attracts 195% APR.

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5 0

1 year ago

Fox brothers enterprises, inc., agreed to convey to canfield a lot, lot 23, in a subdivision known as fox estates, together with

valkas [14]

Idk sorry im retared

3 0

3 years ago

Me Online, Inc. is considering a project that has an initial after-tax outlay or after-tax cost of $220,000. The respective futu

raketka [301]

Answer:

a. Me Online rejects the project because the NPV is about -$22,375.73

Explanation:

The computation of the Net present value is shown below

= Present value of all yearly cash inflows after applying discount factor - initial investment

The discount factor should be computed by

= 1 ÷ (1 + rate) ^ years

where,

rate is 11%

Year = 0,1,2,3,4

Discount Factor:

For Year 1 = 1 ÷ 1.11^1 = 0.9009

For Year 2 = 1 ÷ 1.11^2 = 0.8116

For Year 3 = 1 ÷ 1.11^3 = 0.7312

For Year 4 = 1 ÷ 1.11^4 = 0.6587

So, the calculation of a Present value of all yearly cash inflows are shown below

= Year 1 cash inflow × Present Factor of Year 1 + Year 2 cash inflow × Present Factor of Year 2 + Year 3 cash inflow × Present Factor of Year 3 + Year 4 cash inflow × Present Factor of Year 4

= $50,000 × 0.9009 + $60,000 × 0.8116 + $70,000 × 0.7312 + $80,000 × 0.6587

= $45,045.05 + $48,697.35 + $51,183.40 + $52,698.48

= $197,624.28

So, the Net present value equals to

= $197,624.28 - $220,000

= -$22,375.80

We take the first four digits of the discount factor.

3 0

4 years ago

Suppose that Italy and Sweden both produce jeans and stained glass. Italy's opportunity cost of producing a pane of stained glas

Simora [160]

Answer:

The correct answer is option C.

Explanation:

Italy and Sweden both produce jeans and stained glass.

Italy's opportunity cost of producing a pane of stained glass

= 4 pairs of jeans

Sweden's opportunity cost of producing a pane of stained glass

= 10 pairs of jeans

Since Italy has a lower opportunity cost of producing glass, so we can say that it has a comparative advantage in the production of glass.

Italy's opportunity cost of producing a pair of jeans

= $\frac{1}{4}$

= 0.25

Sweden's opportunity cost of producing a pair of jeans

= $\frac{1}{10}$

= 0.1

Sweden has a lower opportunity cost in the production of jeans, so it has a comparative advantage in the production of jeans.

So, Italy will produce and export glass and Sweden will produce and export jeans.

Both the countries will gain from trade if the trade price lies between their opportunity cost.

So the trade price will be 8 pairs of jeans per pane of stained glass.

7 0

3 years ago